Rules and Penalties of the Labor Management Corporation 1.

Board Resolutions - Anti-Corruption Measures: The Labor Management Corporation (Corporation) has been authorized by a resolution of its Directors to participate in the administration of a set 0f anti-corruption protocols agreed to by the District Council of Carpenters of New York City and Vicinity (Union) and the [names of Associations] in their recently executed collective bargaining agreement (CBA) (these anti-corruption protocols are referred to in the CBA and shall be referred to hereafter as Anti-Corruption Measures). 2. Labor Management Corporation Powers of the Chair: The Board of Directors of the Corporation has by resolution, appointed an Executive Director with the authority to administer the Anti-Corruption Measures program (Program). Pursuant to that resolution, the Executive Director shall have: The authority to expend the funds approved by the Directors as necessary for the administration of the Program; The authority to administer each Joint Adjustment Board(Board or Boards) created by a CBA between the Union and an Employer Association in order to adjudicate alleged violations of the Program; The authority to employ a Principal Investigator and up to eight investigators; The authority to investigate alleged violations by Employers, shop stewards or others of the Anti-Corruption Measures based on reasonable suspicion, information received from a reliable source or randomly; The authority to refer to the appropriate Board alleged violations of the Program when the Principal Investigator believes that there are reasonable grounds supporting his/her belief that a violation of the Anti-Corruption Measures by an Employer has occurred; The authority to refer to the Union alleged violations by a shop steward where the Principal Investigator believes there are reasonable grounds supporting his/her belief that a violation of the Anti-Corruption Measures has occurred;

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The authority to propose to the Corporation one or more amendments to these Rules as circumstances dictate.

3. Labor Management Corporation: Responsibilities of The Executive Director: The Executive Director shall be responsible to: Administer the investigation of alleged violations of the Program; Hire and manage a Principal Investigator and up to eight investigators (at least five of whom must have backgrounds in law enforcement) and direct them to investigate alleged violations of the Program, with a focus on violations occurring on jobs reported to the District Council as two person jobs. Establish Boards responsible for adjudicating alleged violations of the Program, in cooperation with the Union and Employer Associations; Ensure that penalties meted out by a particular Board are implemented and fines imposed are collected. Maintain detailed records of each allegation of a violation of the Program, including by whom the grievance(s) was made or referred, to which investigator the grievance(s) was assigned, a description of the outcome of each investigation, a notation indicating whether the Principal Investigator prosecuted the alleged violation before a Board, the outcome of the prosecution and the status of the penalties, if any, imposed; Report to the Corporation at least once a calendar quarter via a written summary of the activities of the Principal Investigator, investigators and the Boards. The summary should include, at a minimum, a running statistical calculation of the number of charges of violations received, the number of investigations conducted, the number of grievances resulting in prosecutions, the outcome of the prosecutions, the types of penalties imposed and the status of the penalties; Refer to the Review Officer and Inspector General any allegations of organized crime influence referred to the Corporation or raised by the Principal Investigator;

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Refer to the appropriate law enforcement agency and Inspector General threats of violent acts or violent acts directed against the Principal Investigator, investigators or any other employees of the Corporation;

Perform all other acts within the power of the Corporation that will ensure the effective implementation of the Anti-Corruption Measures.

4. Joint Adjustment Boards: Pursuant to the authority vested in it by the CBAs between the Union and various employer associations, the Corporation shall establish Joint Adjustment Board (Board or Boards) to carry out the responsibilities assigned to it by each such CBA. 5. Funding: Each Board shall be funded by the Corporation, based on a proposed budget which the Executive Director submits to the Directors of the Corporation and on the funds available to the Corporation. 6. Composition: Each Board shall be comprised of four members and an Impartial Chairperson. Two of the members shall be appointed by and serve at the pleasure of the Union; two of the members shall be appointed by [name of Association]; and the Chairperson of each Board shall be selected as set out in paragraph 10 below. 7. Board Members -Alternates: The Union and each Employers Association, and the General President, may appoint an indefinite number of alternates who may serve in place of the four members of each Board. Reference to members shall be interpreted to refer to alternates as well. 8. Quorum: The presence of one member appointed by an Employer Association and one member appointed by the Union shall constitute a quorum for the transaction of all business by a Board. 9. Board -Vote: The two members appointed by the Union and the two members appointed by the Employers Association shall each have one vote. All affirmative decisions must be unanimous; deadlocks shall be submitted to the Impartial Chairperson for resolution. 10. Impartial Chairperson: The Impartial Chairperson for a particular Board shall be selected as follows: The Union shall submit to all the signator Employer Associations the names of five arbitrators who have reputations for impartiality and fairness; and the Employer Associations shall collectively submit a similar list of the names of five arbitrators who have reputations for impartiality and fairness. The Union may strike three names from the Associations list and the Associations may strike three names from the Unions list. The four remaining arbitrators shall serve as a

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rotating panel of Impartial Chairpersons, with each agreeing to sit for up to two days a month for three consecutive months as the Impartial Chairperson for each Board that has hearings on one or both days of the month scheduled for such hearings. If the members of a particular Board deadlock on either the existence of or on the appropriate penalty for a violation, the Impartial Chairperson shall vote to break the deadlock. The Impartial Chairperson shall issue an oral ruling, within one hour after the hearing is closed, and issue a brief, written confirmation of the oral ruling within twenty-four (24) hours of the issuance of the oral ruling. 11. Administrative Personnel: Each Board shall be administered by the Executive Director of the Corporation (Executive Director), who shall provide space for hearings, teledata and copying facilities, secretarial assistance and room for files for the Boards. 12. Grievances: All grievances alleging violations of Anti-Corruption Measures that come to the attention of the Corporation shall be logged-in and processed pursuant to the procedures set forth in Exhibit A, Process for Grievances attached hereto. After processing, a particular grievance shall be referred to the Principal Investigator, who shall cause each such grievance to be promptly investigated pursuant to Exhibit A. 13. References to the Board: A Board shall only hear grievances referred for prosecution to it by the Principal Investigator, after consultation with the Executive Director, and by the Inspector General of the District Council. After a grievance is received, the Board shall schedule a hearing as soon as the Board can be convened. 14. Service of Grievances: The Board shall expeditiously serve a Notice of Grievance on the party grieved with a summary of the grievance referred to the Board by the Principal Investigator, or the Inspector General, pursuant to the procedures set out in Exhibit A and sufficiently in advance of the scheduled hearing to give the aggrieved party a reasonable opportunity to prepare, but in no event less than one (1) week prior to the hearing. The grievance may be sent by overnight mail, email or as a facsimile. 15. Appearances: A grievance shall be presented to the Board by the Principal Investigator or his/her designee. A grievance may also be presented to the Board by the Inspector General or his/her designee. Each grievance shall be responded to by a representative of the grieved party. The parties shall have the right to be represented by counsel. 16. The Hearing: The grievances shall be presented via testimonial and documentary evidence. All witnesses shall swear to testify truthfully. Each side shall be allowed two hours (inclusive of its cross-examinations of adverse witnesses) to present its case, unless the Board, in its discretion, allows additional time or provides for additional hearings. The ordinary rules of evidence shall not apply.

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17. Decisional Process: At the close of the hearing, the Board shall retire to consider the evidence; it shall make a decision in no more than two hours or at such time as the Board in its discretion shall determine. If the Board cannot reach a unanimous decision, the matter will be regarded as deadlocked and shall be submitted to the Chairperson who may proceed to decide the matter pursuant to paragraph 10. 18. Penalties: If the Board finds an Employer has committed a violation of the AntiCorruption Measures it shall impose the appropriate penalty based on the category the violation is assigned as described in more detail in Exhibit B Penalties, to the Rules and Penalties; provided, however, either the Associationappointed Board members or the Union-appointed Board members may petition the Impartial Chairperson in writing to impose a lesser or greater penalty on the ground that the prescribed penalty would, if imposed, result in a manifest injustice. Such a petition must be filed with the Impartial Chairperson no later than seventy-two hours after the Board imposes a penalty; the other two Board members shall have an additional forty-eight hours to state their opposition to the requested relief. The Impartial Chairperson shall issue a brief written ruling no later than five business days after receiving the petition seeking relief. 19. The unanimous decisions of the Board and all decisions of the Impartial Chairperson shall be final and binding, and not subject to further review.

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Exhibit B Penalties Adjudicated violations of the Anti-Corruption Measures shall result in minimummandatory penalties; provided, however, a Board may suspend the imposition of a penalty for a Category 2 violation that occurs within the first three months after the Agreement is executed by both parties. Violations by an Employer shall include, but not be limited to: failure to timely obtain a Job Number prior to the start of the job; failure to have a shop steward on a Project; failure to timely correct an inaccurate shop stewards (scanned) report; intentional submission of a false Certification Form; submission of an inaccurate Certification Form; failure to maintain a proper Match on a Project; denying or hindering access to a Project for purposes of scanning by IGO representative(s), shop steward(s), Corporation representative(s), and/or District Council representative(s). Each specific violation shall carry a minimum-mandatory penalty up to and including revocation of Full Mobility; provided, however, inadvertent and unintentional violations may not warrant the imposition of a minimum-mandatory penalty where to do so would result in a manifest injustice. Violations of the Anti-Corruption Measures shall be categorized as either a Category 1 or a Category 2 violation. Any alleged violation is serious, and a violation found by the BOARD warrants appropriate punishment. However, it is recognized that some violations are more serious, and warrant stronger punishment. Upon such a finding of a Category 1 or Category 2 violation, the Board will impose specific, mandatory penalties on an offending Employer for each established violation.

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A Category 1 violation shall be considered to be the most serious, and, therefore, warrant the strongest penalty. Accordingly, an Employer found to have committed a Category 1 violation shall have Full Mobility revoked for the duration of the Agreement. The penalty will be mandatory. CATEGORY OF VIOLATION Category 1 Category 2 Category 2 Category 2 First Violation Second/Third Violation Fourth Violation MINIMUM-MANDATORY PENALTY Revocation of Full Mobility for duration of the Agreement $1000 $2000 (second) $5000 (third) Revocation of Full Mobility for duration of the Agreement

VIOLATION Intentional submission of a false Certification Form Intentional failure to make all payments required by the Agreement to an Employee; Intentional falsification of Fringe Benefit remittance reports; Refusal to make Fringe Benefit contributions in response to a Court order or an arbitrators order after time for an appeal has expired; Failure to timely report a Project Failure to timely obtain a Job Number for a Project; Failure to have a steward on a Project

PENALTY Category 1 Category 1

Category 1 Category 1

Category 2 Category 2 Category 2

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where required; Failure to maintain the Match; Submission of more than three (3) inaccurate Certification Forms within a rolling twelve month period; Failure to submit a Certification Form; Denying or hindering access to a Project for purposes of scanning by IGO representative(s), shop steward(s), Corporation representative(s), and/or District Council representative(s). Category 2 Category 2 Category 2 Category 2

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Exhibit A Processing Grievances and Conducting Investigations Complaints about possible violations of the Anti-Corruption Measures may come to the Corporation through a variety of sources including a member, another employer, the Review Officer, Inspector Generals Office of the District Council (IG), District Council Representatives, a Shop Steward or a Corporation investigator . All complaints will be investigated and reviewed and a determination shall be made by the Principal Investigator in consultation with the Executive Director, or by the IG pursuant to IG Procedures, either that the evidence does not support a preliminary finding that a violation has occurred; or that the evidence supports a reasonable belief that a violation has occurred; or that the evidence of a violation is inconclusive or that referral to a Board is unwarranted. Each allegation of a violation shall be assigned an indentifying number, shall be electronically filed (with back-up), shall have attached to it in an appropriate file the notes, if any, of the investigator assigned to the case, the notes of the Principal Investigator, if any, and a scanned version of all documents reviewed in the course of the investigation and scanned versions of all other relevant documents or comments made by related parties, including the Employer involved. The electronic file of each matter investigated shall be password protected and access restricted to all except those with a need to know the contents of the files. At each stage of the grievance process, the decisions made and the individuals responsible for those decisions will be documented in writing and signed off by the individual or the appropriate supervisor or head of the respective department. A staff person within the office of the Corporation will be designated by title or duties as the Intake Person. Any intake either by phone, investigation or electronic mail will be documented with date and time on the Intake Form. The Intake Person will record all information offered by complainant and get the following information: 1. Name of complainant, UBC ID # (if any) and contact information
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2. Date of alleged offense 3. Employer, or Shop Steward,committing alleged violation and any relevant information on Employer including: a. Site location b. Foreman on site c. Shop Steward on site d. Facts supporting allegation e. Complainants relation to employer (e.g. employee, steward, witness). 4. The intake form will then be given an identification number, and delivered to the Principal Investigator or his designee within 24 hours for assignment for follow up by one or more investigators. When an investigation is completed and there are findings supporting a belief by the Principal Investigator, in consultation with the Executive Director, or the IG, that there is evidence of a violation or violations of the Anti-Corruption Measures by an Employer, a Notice of Grievance will be drafted which will include: 1. Name of Employer, Address and Contractor ID # 2. Site of violation and date(s) of alleged violation(s) 3. Job # 4. Date for the hearing of allegations; and 5. Rules governing the hearing process The Notice of Grievance will be sent to the principal officer of the Employer in question, the Review Officer, the IG, and the appropriate Employer Association and the District Council. Before a Notice of Grievance shall issue the Principal Investigator, Executive Director and IG shall meet with the Employer grieved in good faith effort to settle or adjudicate the matter.

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When a case is developed by the random field visits of the Corporations investigators a similar process will be followed. The facts will be recorded by the investigator on the intake form and be given an identification number. Further investigation will be conducted as determined after an initial review and approval by the Principal Investigator. This may include interviews of employees of the Employer, review of payrolls, benefit fund payments and access to all information available from either the District Council records and staff or the District Council Fringe Benefit Funds. The case will proceed until such time as there is a reasonable belief to create a Notice of Grievance or the case will be closed because there was no finding of cause to believe a violation occurred. Coordination of efforts The Executive Director, the Principal Investigator and the IG shall meet no less than weekly to review cases, determine whether the Corporation or the IG will be primarily responsible for investigating a case or reviewing the information received. These coordination meetings will be essential to eliminate unnecessary duplication of efforts. Access to Records In order to properly investigate and evaluate alleged violations, the Corporations investigative staff will be authorized to require an Employer to provide documents necessary to make an assessment in a particular case. These documents may include: 1. Forepersons activity reports 2. Bid documents 3. Shop steward reports or scanner reports 4. Invoices/requisitions for payments 5. Overtime tickets 6. Job coordination meeting notes 7. Emails and other communication between Employers and site supervision

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